Hyatt sees ‘strong potential’ in Abu Dhabi hotel market

The future looks good for the Abu Dhabi hotel market, says Thierry Bertin, Hyatt International's Vice-President Worldwide Sales – South West Asia, as the UAE capital continues to post significant growth figures despite a still very challenging global tourism climate.

The Abu Dhabi Tourism Authority (Adta) on April 28, reported that the emirate accommodated a total of 510,114 hotel guests or an equivalent of 1.56 million guest nights in the first quarter of this year, a 10-per-cent hike compared to the same quarter in 2010.

Occupancy level in Abu Dhabi in the first three months of 2011 was also at a significant 72 per cent, according to the capital’s tourism bureau.

While Dubai offers distinct criteria as a modern-day leisure and business destination, Bertin said Abu Dhabi has its own unique character that attracts tourists from across the globe.

“Abu Dhabi [offers] another angle [to the UAE tourism industry] because it’s going a bit more cultural. We have very good reports and expectations from tour operators in Europe. We see that there’s a strong potential in Abu Dhabi especially with the new museum and [developments in] Yas Island and Saadiyat Island,” says Bertin.

Hyatt International, which currently operates three of their brands in Dubai namely Park Hyatt, Hyatt Regency and Grand Hyatt, is also upbeat about Abu Dhabi’s tourism sector as it prepares for the opening of two additional properties in the country.

Towards the last quarter of this year, the international hotel chain will open Hyatt Capital Gate, a 189-room hotel that will occupy levels 18 to 32 of the 525-foot Capital Gate building in Abu Dhabi city proper.

Hyatt Capital Gate will take advantage of the skyscraper’s unique structure – the building was named by the Guinness Book of World Records in June 2010 as the “world’s furthest leaning man-made tower”, beating Italy’s renowned Leaning Tower of Pisa.

Aside from the panoramic “sky lobby”, which is suspended 80 metres above the ground on the 18th floor, each room in the Hyatt Capital Gate will have a different shape and orientation, according to the company’s official statement.

Another property that will be launched in Q4 is the 270-guest-room Park Hyatt Abu Dhabi Hotel and Villas in Saadiyat Island, the hospitality developer’s first Park Hyatt branded resort in the Middle East.

The property is expected to meet an expected influx of travelers following the construction of attractions such as Louvre Abu Dhabi and Guggenheim Abu Dhabi museums to name a few.

Without giving the exact figures, Bertin said investments in Hyatt’s fortcoming Abu Dhabi properties had been “considerable”.

Tapping the emerging markets

Hyatt International is also optimistic about the growth potentials of emerging tourism markets as it plans to build around 40 hotels in key and secondary cities across developing regions in the next five years.

“Our vision for the emerging markets is very strong moving forward in the next five years. Right now [our hotels are located] more on the primary cities, but we’re moving into secondary cities and we’ll also introduce the Hyatt Place brand,” says Bertin.

Known for its luxurious properties, Hyatt International’s Hyatt Place brand is geared towards business travelers. There are currently more than 160 Hyatt Place hotels in the United States, according to the hotel’s corporate website.

In April, the company opened its first property in the Maldives under the Park Hyatt brand. Three Hyatt hotels are also scheduled to be launched this year, starting with the Hyatt Regency Chennai.

This will be followed by Grand Hyatt Goa by the middle of 2011 and the Park Hyatt Hyderabad by the fourth quarter of this year.

Dubai project in the pipeline

Bertin revealed that in addition to their three existing properties in Dubai, Hyatt has plans to build another hotel in the emirate although details are still under wraps.

“For now we have one more project confirmed [in Dubai]. We don’t have a date yet because it’s part of a bigger project and doesn’t really depend [wholly] on us,” Bertin said.

French-born Bertin, who has been with the Hyatt International Corporation for the past 30 years working in different properties worldwide, says their Dubai hotels have recorded positive occupancy rates in Q1 2011 compared with Q1 2010, however hotel rates remained under pressure.

“The rates are still a little bit shy, but Dubai is starting to move forward again. It can always be better, but one should never forget that recession is still felt in some countries, regions across the world. Growth in Europe, for instance, hasn’t picked up. It’s a bit precarious,” the Hyatt executive said.